Northrim Bank launched the Alaskanomics blog to provide news, analysis and commentary on Alaska’s economy. With contributions from economists, business leaders, policy makers and everyday Alaskans, Alaskanomics aims to engage readers in an ongoing conversation about our economy, now and in the future.

Northrim Bank launched the Alaskanomics blog to provide news, analysis and commentary on Alaska’s economy. With contributions from economists, business leaders, policy makers and everyday Alaskans, Alaskanomics aims to engage readers in an ongoing conversation about our economy, now and in the future.

Tuesday, June 12, 2018

The Share of Alaska Workers over 55 is Growing

With data gathered by Alaska’s Department of Labor and Workforce Development, it is clear that the percentage of Alaskan workers over the age of 55 is growing. Alaska doesn’t have as many senior citizens as other states, but the population of 65-plus is growing faster than any other part of the nation.

Between 2010 and 2016 the 65-plus age group grew by 44 percent. This is important because people are staying in the workforce longer. This is not only in Alaska, but throughout the nation. In 2002, only 10 percent of the workforce was over 55 years old. It was 20 percent in 2017. One reason for this is that most everyone in the baby boomer generation has reached the age of 55 and many are still working. This generation is so large that it has shifted the overall age profile in Alaska.

Older workers also tend to make more than younger workers. Wages do start to drop off after age 65, but those between 55 and 64 are the highest-earning age group in nearly every occupation.

As noted above, workers over 55 years old or older made up 20 percent of the workforce in 2017, but took home 23 percent of the wages in Alaska. This makes sense as the occupations with the highest percentages of older workers tend to be higher-paying jobs that take years of experience to obtain. This includes top executive positions, postsecondary teachers, and business operations specialists to name a few.

There is also a significant gender pay gap among older workers. It is wider in older generations than it is in younger generations. The industry with the closest wage between men and women is in local government. Older women earn 84 cents to their male counterparts’ dollar. Older women are more likely to hold government jobs and represent 59 percent of older workers in state and local governments. Some traditionally female positions such as teachers and nurses are in the public sector.

As Alaska’s population continues to age and more workers put off retirement, these trends will continue. It will be interesting to watch if the older generation begins to retire as the state eases its way out of the recession. During the recession in the 1980’s, the population was much younger and many left at the start of the recession. There has not been the outmigration in time around that there was 30 years ago. The population has remained much more stable through this recession.